A Light (LIFT3) said Thursday (30) that the Fitch downgraded the company’s rating from CCC to CC at the national level and from CCC+ to CC at the international level.
The movement reflects the rating agency’s view that there is a “high probability” that the Light group will enter into a debt restructuring process, following the company’s statements after releasing its 4Q22 results.
Light recorded a net loss of BRL 5.67 billion in the accumulated period of 2022, as announced on Tuesday (28).
The company acknowledged its “complex operational and financial situation”, and explained that the result was driven by high debt, insufficient cash generation and high rate of energy theft.
For Fitch, Light’s access to some financing must be limited and/or very costly, due to current market conditions and its credit profile.
According to the agency, the company “should not be able to raise the necessary financing to support its expected negative free cash flow (FCF) and debt amortizations in 2023”.
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Source: Moneytimes
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